New U.S. Sanctions on Nuclear Program, Bank and Shipping

            On May 9, the State Department imposed new sanctions on four Iranian companies and one individual for providing “goods, technology, and services that increase Iran’s ability to enrich uranium and/or construct a heavy water” research reactor. U.N. Security Council Resolutions prohibit supporting Iran’s efforts on those fronts. “Iranian private sector firms should heed the risks incurred by conducting business with those who support Iran’s proscribed nuclear activities,” warned Acting Deputy Spokesperson Patrick Ventrell.
            On the same day, the Treasury sanctioned a front company for trying to evade sanctions on Iranian oil sales. It also designated the Iranian Venezuelan Bi-National Bank for engaging in financial transactions on behalf of the previously sanctioned Export Development Bank of Iran. “As Iran becomes increasingly isolated from the international financial system and energy markets, it is turning increasingly to convoluted schemes and shady actors to maintain its access to the global financial system,” said Under Secretary for Terrorism and Financial Intelligence David S. Cohen. The Treasury also added eight more vessels to its list of blocked property, bringing the total to 64. The following are excerpts from State Department and Treasury press statements.

            Today the Secretary of State imposed sanctions on four Iranian nuclear support companies and one individual as Weapons of Mass Destruction Proliferators and their Supporters pursuant to Executive Order (E.O.) 13382.  These entities and individual were designated because they provide the Iranian government goods, technology, and services that increase Iran’s ability to enrich uranium and/or construct a heavy water moderated research reactor, both of which are activities prohibited by UN Security Council Resolutions.  These designations generally prohibit transactions between the named entities and any U.S. person, and freeze any assets the designees may have under U.S. jurisdiction.  This action was taken in light of the ongoing concerns that the international community has with respect to Iran’s nuclear program, which  Iran continues to refuse to address….
 
            The U.S. Department of the Treasury is taking a number of actions today against Iranian attempts to circumvent international financial sanctions.  As part of the Treasury Department’s continuing vigilance against Iran’s efforts to use front companies and deceptive business practices to sell their oil on the international market, today Treasury identified Sambouk Shipping FZC as subject to sanctions under Executive Order (E.O.) 13599, which, among other things, targets the Government of Iran (GOI) and persons acting for or on behalf of the GOI.  Sambouk Shipping is tied to Dr. Dimitris Cambis who, along with a network of front companies, were sanctioned in March 2013 under E.O. 13599 and the Iran Threat Reduction Act and Syria Human Rights Act of 2012 (TRA) after the U.S. government uncovered Dr. Cambis’s scheme to evade international oil sanctions against Iran.  In an attempt to continue his scheme, Dr. Cambis is using the recently formed Sambouk Shipping to manage eight of the vessels that he operates on behalf of the National Iranian Tanker Company (NITC).  These vessels have been used to execute ship-to-ship transfers of Iranian oil in the Persian Gulf.  These transfers are intended to facilitate deceptive sales of Iranian oil by obscuring the origin of that oil.
            Today, the Treasury Department also imposed sanctions against Iranian Venezuelan Bi-National Bank (IVBB).  IVBB was designated pursuant to E.O. 13382, which targets proliferators of weapons of mass destruction (WMD) and their supporters, for engaging in financial transactions on behalf of the previously sanctioned Export Development Bank of Iran (EDBI)...